Q.23. Following are the balance Sheets of Raj Ltd. as on 31st March, 2013 and 31st March 2014:
| Particulars | 31.3.14 | 31.3.13 |
| 1. Equity and Liabilities | ||
| Shareholder's Funds | ||
| Share Capital | 700000 | 400000 |
| Reserves & Surplus | -320000 | -50000 |
| Non-current Liabilities | ||
| Long-term Borrowings: 9% debentures | 400000 | 200000 |
| Current Liabilities | ||
| Trade Payables | 150000 | 110000 |
| Other: Current liabilities: Outstanding Expenses | 20000 | 10000 |
| Total | 950000 | 670000 |
| II. Assets | ||
| Non-current Assets: | ||
| Fixed Assets | 500000 | 300000 |
| Investments | 140000 | 200000 |
| Current Assets | ||
| Inventories (Stock) | 100000 | 50000 |
| Trade Receviables | 170000 | 100000 |
| Cash and Cash Equivalents | 40000 | 20000 |
| Total | 950000 | 670000 |
Additional Information:
Included in the fixed assets was a piece of machineiy costing 70,000 on which
depreciation charged was ‘40,000 and it was sold for 30,000. During the year Rs. 1,40,000 depreciation was charged on fixed assets.
Prepare the Cash Flow Statement.
Dear Student,
| Cash Flow Statement for the year ended March 31, 2014 |
||||||
| Particulars | Amount (Rs) |
Amount (Rs) |
||||
| A | Cash Flow from Operating Activities | |||||
| Loss as per Statement of Profit and Loss | (2,70,000) | (2,70,000) | ||||
| Profit Before Taxation | (2,70,000) | |||||
| Items to be Added: | ||||||
| Depreciation | 1,40,000 | |||||
| Interest on Debentures | 18,000 | 1,58,000 | ||||
| Operating Profit before Working Capital Adjustments | (1,12,000) | |||||
| Add: Decrease in CA & Increase in CL | ||||||
| Outstanding Expenses | 10,000 | |||||
| Trade Payables | 40,000 | |||||
| Less: Increase in CA & Decrease in CL | ||||||
| Debtors | (70,000) | |||||
| Inventories | (50,000) | (70,000) | ||||
| Net Cash Flows from Operating Activities | (1,82,000) | |||||
| B | Cash Flow from Investing Activities | |||||
| Sale of Machinery | 30,000 | |||||
| Purchase of Fixed Assets | (3,70,000) | |||||
| Sale on Investments | 60,000 | (2,80,000) | ||||
| Net Cash Used in Investing Activities | (2,80,000) | |||||
| C | Cash Flow from Financing Activities | |||||
| Issue of Shares | 3,00,000 | |||||
| Issue of Debentures | 2,00,000 | |||||
| Interest on Debentures | (18,000) | 4,82,000 | ||||
| Net Cash Flow from Financing Activities | 4,82,000 | |||||
| D | Net Increase or Decrease in Cash and Cash Equivalents | 20,000 | ||||
| Add: Cash and Cash Equivalent in the beginning of the period | 20,000 | |||||
| Cash and Cash Equivalents at the end of the period | 40,000 | |||||
| Fixed Asset Account | |||
| Dr. | Cr. | ||
| Particulars | Amount (Rs) |
Particulars | Amount (Rs) |
| Balance b/d | 3,00,000 | Depreciation A/c | 1,40,000 |
| Bank A/c (Purchase- Bal. Fig.) | 3,70,000 | Bank A/c | 30,000 |
| Balance c/d | 5,00,000 | ||
| 6,70,000 | 6,70,000 | ||
